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Stocks to watch for cbd oil

Best CBD Oil Stocks

Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Tweed, Spectrum Therapeutics, and CraftGrow. Although it primarily operates in Canada, Canopy has distribution and production licenses in more than a dozen countries to drive expansion in global medical cannabis and also holds an option to acquire Acreage Holdings upon U.S. federal cannabis legalization.

Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Tweed, Spectrum Therapeutics, and CraftGrow. Although it primarily operates in Canada, Canopy has distribution and production licenses in more than a dozen countries to drive expansion in global medical cannabis and also holds an option to acquire Acreage Holdings upon U.S. federal cannabis legalization.

Jazz Pharmaceuticals (NASDAQ: JAZZ)

Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and indications in neuroscience and hematology-oncology. Jazz’s product portfolio includes its lead drug, Xyrem, for narcolepsy, Sunosi for improving wakefulness in patients with excessive daytime sleepiness, Defitelio for severe veno-occlusive disease after stem cell transplant, Vyxeos for acute myeloid leukemia, and Zepzelca for small cell lung cancer.

Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and indications in neuroscience and hematology-oncology. Jazz’s product portfolio includes its lead drug, Xyrem, for narcolepsy, Sunosi for improving wakefulness in patients with excessive daytime sleepiness, Defitelio for severe veno-occlusive disease after stem cell transplant, Vyxeos for acute myeloid leukemia, and Zepzelca for small cell lung cancer.

Village Farms Intl (NASDAQ: VFF)

As one of the largest and longest-operating greenhouse growers in North America, Village Farms International produces and distributes premium cannabis to national growers in the U.S. and Canada.

The cannabis stock has a market cap of $288 million and trades over 1 million shares per day. It has an EPS of $0.04 and a P/E ratio of 128. Village Farms International generated total revenue of $144 million in 2019, making it one of the best stocks under $10.

Village Farm International recently reported its revenue in Q1 2020 and declared that it has had a profitable business for the 5th consecutive quarter. The cannabis company has also announced that it has expanded its credit facility with its existing lender by $59 million.

As one of the largest and longest-operating greenhouse growers in North America, Village Farms International produces and distributes premium cannabis to national growers in the U.S. and Canada.

The cannabis stock has a market cap of $288 million and trades over 1 million shares per day. It has an EPS of $0.04 and a P/E ratio of 128. Village Farms International generated total revenue of $144 million in 2019, making it one of the best stocks under $10.

Village Farm International recently reported its revenue in Q1 2020 and declared that it has had a profitable business for the 5th consecutive quarter. The cannabis company has also announced that it has expanded its credit facility with its existing lender by $59 million.

GrowGeneration (NASDAQ: GRWG)

GrowGeneration Corp. is a premier supplier of cannabis and cannabis-growing equipment. These products include organic nutrients, drip systems, water pumps, air pumps, LED lights and commercial light systems. It is the largest hydroponic supplier in the U.S., with 31 retail and distribution centers.

The cannabis stock has a market cap of $849 million and has an EPS of $0.02. It has an annual dividend yield of $0.02 per share. GrowGeneration has high liquidity and trades more than 1.7 million shares per day. It generated revenue of $79 million in 2019.

GrowGeneration Corp. is a premier supplier of cannabis and cannabis-growing equipment. These products include organic nutrients, drip systems, water pumps, air pumps, LED lights and commercial light systems. It is the largest hydroponic supplier in the U.S., with 31 retail and distribution centers.

The cannabis stock has a market cap of $849 million and has an EPS of $0.02. It has an annual dividend yield of $0.02 per share. GrowGeneration has high liquidity and trades more than 1.7 million shares per day. It generated revenue of $79 million in 2019.

AbbVie (NYSE: ABBV)

AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The company’s top drug, Humira, represents close to half of the company’s current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women’s health.

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AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The company’s top drug, Humira, represents close to half of the company’s current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women’s health.

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CBD Oil Stock Movers of the Day

Stay up to date with the latest price movements of CBD oil stocks on the market today. You can also review these premarket movers to help you trade stocks before trading sessions open.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket CBD Oil Stocks
Symbol Last Price Change % Change Trade
CWEB 63.91 6.49 11.3% Trade
TLRY 4.435 0.255 6.1% Trade
ZYNE 0.9501 0.045 4.98% Trade
A 129.12 6.03 4.89% Trade
SMG 96.5 4.38 4.75% Trade
CRON 2.96 0.1 3.49% Trade
HEXO 0.2476 0.008 3.2% Trade
NBEV 0.3422 0.01 2.85% Trade
MJ 7.245 0.185 2.62% Trade
IIPR 136.23 3.41 2.56% Trade
Symbol Last Price Change % Change Trade
CRBP 0.2938 -0.006 -2.04% Trade
TAP 53.985 -0.735 -1.35% Trade
CGC 4.7012 -0.009 -0.19% Trade
Market CBD Oil Stocks
Symbol Last Price Change % Change Trade
NBEV 0.35 0.017 5.19% Trade
ZYNE 0.9502 0.045 4.99% Trade
VFF 3.1196 0.08 2.61% Trade
CWEB 58.21 0.79 1.37% Trade
MJ 7.14 0.08 1.13% Trade
STZ 246.4 2.22 0.9% Trade
SMG 92.9 0.78 0.84% Trade
CRON 2.88 0.02 0.69% Trade
TLRY 4.2 0.02 0.47% Trade
ABBV 146.5 0.48 0.32% Trade
Symbol Last Price Change % Change Trade
CRBP 0.2985 -0.001 -0.47% Trade
CGC 4.7 -0.01 -0.22% Trade
After Hours CBD Oil Stocks
Symbol Last Price Change % Change Trade
NBEV 0.355 0.007 2.09% Trade
ACB 1.61 0.03 1.89% Trade
OGI 1.14 0.01 0.88% Trade
VFF 3.1 0.02 0.64% Trade
CWEB 64.1 0.33 0.51% Trade
CGC 4.73 0.02 0.42% Trade
MJ 7.26 0.02 0.27% Trade
TLRY 4.4499 0.01 0.22% Trade
CRBP 0.294 0.06% Trade
HEXO 0.25 0.04% Trade
Symbol Last Price Change % Change Trade
CRON 2.96 -0.01 -0.34% Trade

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After the legalization of marijuana in the U.S., many companies are actively engaged in the research, development and distribution of cannabis. Cannabidiol (CBD) is the non-psychoactive substance present within cannabis and its products such as CBD oil has had a major impact on the health and wellness industry.

Take a look at these CBD oil stocks that are generating millions of dollars in revenue this year.

Overview: CBD Oil Stocks

Since ancient times, cannabis has been used as a form of medicine and as a means to induce euphoria. Indian sages have also mentioned the medicinal use of marijuana in Vedic hymns of antiquity.

However, President Richard Nixon banned the cultivation and sale of marijuana in the U.S. as part of his “war on drugs” campaign in 1970. It wasn’t until the Compassionate Use Act of 1996 was passed that California became the first state to legalize marijuana to treat people with severe or chronic diseases. As of 2022, 37 states in the U.S. have legalized the medical use of marijuana and 18 states have legalized the recreational use of marijuana.

According to a recent report by the New Frontier Data, the legal sale of cannabis could reach $30 billion by 2025. Due to such high potential to earn profits, alcohol companies have started to invest big in CBD oil companies.

Constellation Brands Inc. (NYSE: STZ) has invested billions in Canopy Growth Corp. (NYSE: CGC). Molson Coors (NYSE: TAP) invested billions in Hexo (TSX: HEXO). Budweiser (NYSE: BUD) entered a joint venture to develop non-alcoholic CBD drinks with Tilray Inc. (NASDAQ: TLRY).

You can still catch up with the market trend and gain some good earnings by investing in CBD oil stocks today.

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Best Medical Marijuana Stocks to Watch

Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights

The global medical marijuana market is projected to grow at an annualized rate of almost 18% through 2028, according to Data Bridge Market Research. Much of this growth will likely be in the U.S., where 37 states have already legalized medical cannabis. Medical cannabis products sold in the U.S. include dried flower, vaping concentrates, cannabis-infused edibles, and topical products such as lotion.

Investors who opt to buy individual medical marijuana stocks can choose among Canadian or U.S. companies. Canadian medical cannabis companies can legally list on U.S. stock exchanges, while U.S. medical cannabis companies operating legally at the state level can legally list on Canadian stock exchanges and over the counter (OTC).

Before you invest in medical cannabis companies, find out what you need to know about this growing sector.

Top medical marijuana stocks

These five medical marijuana stocks are top buys for 2022:

Market Capitalization

Description

Village Farms International (NASDAQ:VFF)

$387 million

Grows, produces, and sells medical cannabis products primarily for the Canadian market and cucumbers, peppers, and tomatoes for the North American market.

Jazz Pharmaceuticals (NASDAQ:JAZZ)

Trulieve Cannabis (OTC:TCNNF)

Innovative Industrial Properties (NYSE:IIPR)

Data source: Yahoo! Finance. Data current as of April 25, 2022.

1. Village Farms International

Village Farms International’s roots lie in the fresh produce business. The company still generates slightly more than half of its total revenue from selling cucumbers, peppers, and tomatoes. However, Village Farms’ primary growth driver these days is cannabis.

The company’s Pure Sunfarms ranks as the top-selling brand for dried cannabis flower products in several of Canada’s biggest recreational marijuana markets, including Alberta, British Columbia, and Ontario. But Village Farms is poised for strong growth in the medical cannabis arena, too.

Pure Sunfarms received European Union Good Manufacturing Practices certification in March 2022. This paves the way for the business to begin shipping products to key European medical cannabis markets, including Germany, beginning in the third quarter of 2022.

Meanwhile, Village Farms already sells hemp-derived cannabidiol (CBD) health and wellness products in the U.S. market. The company hopes to enter the U.S. cannabis market if and when marijuana is legalized at the federal level.

2. Valens

Valens is a Canadian company that provides extraction services for companies that make cannabis products, including medical cannabis products such as capsules, soft gels, topical ointments, and tinctures.

Valens contracts with top medical cannabis growers and claims to have the largest extraction capacity among its rivals. The extraction company has multi-year agreements with many Canadian growers, including Canopy Growth (NASDAQ:CGC) , HEXO (NASDAQ:HEXO) , OrganiGram (NASDAQ:OGI) , and Tilray (NASDAQ:TLRY) .

Extraction opportunities related to medical cannabis are growing in the U.S., Europe, Australia, and Latin America. The company’s solid revenue growth is likely to be further boosted by its deal with Signifi Solutions to place Green Roads CBD product kiosks in major malls across the U.S.

Valens is also a top 10 licensed cannabis producer in Canada. The company claimed a market share of 3.1% in February 2022.

Like many Canadian cannabis companies, Valens isn’t profitable yet. However, it expects to achieve positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by the fourth quarter of 2022.

3. Jazz Pharmaceuticals

Jazz Pharmaceuticals became the largest cannabis-focused drug developer following its acquisition of GW Pharmaceuticals in May 2021. Sativex, developed by GW, is a medical cannabis drug that contains both the high-inducing tetrahydrocannabinol (THC) and the non-psychoactive CBD. It treats spasticity associated with multiple sclerosis. Epidiolex, also developed by GW, is a CBD drug. Sativex is approved in multiple countries, excluding the U.S., and Epidiolex is approved in both the U.S. and Europe.

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Epidiolex, which generated sales of more than $658 million in 2021, is significantly boosting Jazz’s revenue. Its sales growth should continue with a recent commercial launch in Ireland and a 2022 launch in France. In addition, Jazz is evaluating Epidiolex in a phase 3 clinical study as a potential treatment for epilepsy with myoclonic-atonic seizures (EMAS).

Jazz is not a pure-play medical cannabis company. It makes the sleep disorder drugs Xyrem and Xywav, which account for more than half of its sales. Jazz also sells the cancer drugs Rylaze, Vyxeos, and Zepzelca.

4. Trulieve Cannabis

Trulieve Cannabis is a vertically integrated U.S.-based cannabis company that grows medical cannabis and distributes medical cannabis products to its own retail dispensaries. The company’s primary operations are in Florida, where it runs 114 medical cannabis dispensaries and commands a market share of close to 50%. Trulieve also has operations in Arizona, California, Colorado, Connecticut, Massachusetts, Maryland, Nevada, Pennsylvania, and West Virginia.

Trulieve’s acquisition of Harvest Health & Recreation in October 2021 made it the most profitable U.S. multistate cannabis operator. The deal also resulted in Trulieve becoming the largest U.S. cannabis company based on retail and cultivation footprint.

Unlike most of its peers, Trulieve regularly delivers quarterly profits. The company’s earnings growth remains strong, which gives Trulieve considerable financial flexibility to invest in expanding its business.

5. Innovative Industrial Properties

As a real estate investment trust, or REIT, Innovative Industrial Properties is the leading real estate provider for the U.S. medical cannabis industry. The company buys properties from medical cannabis operators and then leases the properties back to the operators, providing needed cash to growing cannabis businesses and stable income for Innovative.

Innovative Industrial Properties currently owns properties that are leased to tenants in 19 states. The company is increasing its customer base not only in the states where it already operates but also in additional states that legalize medical or recreational cannabis.

Few medical cannabis stocks have delivered the level of growth that Innovative Industrial Properties has achieved. During the past five years, the company’s revenue has skyrocketed more than 4,500%, while its earnings have vaulted nearly 7,700% higher. This performance has enabled the stock to generate an almost nine-fold gain.

As a REIT, Innovative Industrial Properties distributes at least 90% of its taxable income to investors in the form of dividends. The company’s consistent profitability is due in part to its diversification across many tenants.

How to choose the best medical marijuana stocks

Investors should consider the same key attributes for medical marijuana stocks that they would for any stock:

  • Financial performance: Many medical marijuana companies aren’t yet profitable, but the best companies have clear and defined plans for achieving profitability in the future. The safest companies also have plenty of cash, which creates financial flexibility and preserves the value of the stock.
  • Growth opportunities: The patchy regulatory framework of the marijuana sector means that medical cannabis companies’ growth prospects vary widely. The best companies are minimally limited by geographic constraints.
  • Competitive position: Leading medical marijuana companies have high production capacity, plenty of distribution channels, and beneficial partnerships with established companies.

If you don’t want to choose specific stocks, another way to gain exposure to medical marijuana stocks is to buy shares in a cannabis-focused exchange-traded fund (ETF). Such funds confer instant diversification across the cannabis sector (although currently no pure-play medical cannabis ETFs are available).

Should you buy medical marijuana stocks?

Investing in the medical marijuana sector is relatively risky as long as cannabis remains federally illegal in the U.S. The plant’s federal status also constrains the growth of the sector, and investors have no guarantee that the federal government will continue to allow states to treat cannabis as legal.

But the long-term prospects of the medical marijuana industry are excellent. More countries and U.S. states are recognizing the potential benefits of medical cannabis and legalizing the use and sale of medical cannabis products. More individuals and the broader medical community are also recognizing the plant’s medicinal benefits, driving demand higher for medical marijuana.

Risk-tolerant investors with long investing horizons are likely to profit by investing in medical marijuana.